Apple keeps laughing all the way to the bank, trailed by the Android gang

Apple keeps laughing all the way to the bank, trailed by the Android gang
Not that it should come as a huge surprise, but Apple made out like a bandit in the past two years, according to research firm Counterpoint. It captured the whopping 66% of the smartphone industry's more than a hundred billion in operating profits for the period, peaking at over 80% during the last holiday quarter, and will probably do the same for this current one.

The team from Cupertino left only a few tens of billions on the table for all the other phone makers to share, and the bulk of what was left went to Samsung's mobile department. 

Samsung is followed not-so-closely by Huawei, Oppo and Vivo, while Xiaomi's "5% profit" strategy has destined it to stay in the last profit place among the big phone brands (but first in the hearts of consumers and value-for-money hunters).

After two slump years, due to high prices and ever-increasing upgrade cycles, phone sales are showing modest signs of recovery, boding well for Apple's bottom line in 2020 as well. The 5G push of carrier networks in Apple's bread-and-butter US and Asian markets may lead to increased demand for upgrades to the 5G iPhone 12 models, while Apple's charge into the services and entertainment industry will ensure a steady stream of revenue otherwise. 

All in all, Apple leaves just a third of mobile phone industry profits on the table for all other brands to fight over, which still represents a good chunk of change for everyone involved so the competition isn't going to abate any time soon. 



FEATURED VIDEO

51 Comments

1. Papa_Ji

Posts: 913; Member since: Jun 27, 2016

This shows how overpriced are iPhones...Any of the iPhone above 500$ is robbery. Love the XIAOMI... for just 5% margins and still more innovative than Apple

3. notfair

Posts: 777; Member since: Jan 30, 2017

Android is also overpriced but what's happening here is that apple fans will pay whatever apple demands them to have a status symbol.

6. midan

Posts: 3237; Member since: Oct 09, 2017

No what happening here is, Apple actually sell huge amount of units their flagship phones. They have great product which people want to buy and enjoy using it, it's really that simple.

8. Zrtsg

Posts: 40; Member since: May 09, 2019

Apple has 52% of flagship market while samsung has 25% and huawei 12%. While in the profit you can see the difference is much larger 66% apple and 20% samsung (don't forget that this number includes flagships and midrange so it is supposed to be at least more than half of apple's if they have the same profit) Apple: 52% flagship: 66% profit Samsung:25% flagship+ midrange: 20% profit

9. Zrtsg

Posts: 40; Member since: May 09, 2019

Source:https://www.counterpointresearch.com/5g-cap​tured-5-global-premium-market-q3-2019/

35. ShadowSnypa786

Posts: 655; Member since: Jan 06, 2017

LOL an Android device that has higher quality displays, better camera's and more features are over priced when they cost less than Iphones?? I heard it all Apple is a brand thats what people pay for, people use iphones and they cant do half the things Android does. Everyones using Airpods and they not even the best wireless headphones out there. Apple know how to print money, make cheap phones and sell them at high prices.

11. Vokilam

Posts: 1458; Member since: Mar 15, 2018

If android manufacturers build flagships that majority wanted - you’d see a different story. Unfortunately majority that’s willing to spend upwards of $700 buys an iPhone. Average selling price for androids is Sub-$200. Even Samsung is just little higher than that at about $250. This means that 80-90% of android phones sold are entry level world wide. Android fails to build a phone that they can sell to the public and actually ask a $1000 for. Even though there are android phones that cost that much - not many are willing to buy it over the iPhone. Think about that.

14. midan

Posts: 3237; Member since: Oct 09, 2017

” If android manufacturers build flagships that majority wanted - you’d see a different story. ” Exactly, when Samsung flagship galaxy line was very popular with S3 and S4 Samsung collected 40-45% of market profits here isthephotohttp://cdn01.androidauthority.net/wp-content/uploads/2015/11/Canaccord.jpg This photo also shows how Apple really doesn’t have real threats in the market.

33. shm224

Posts: 317; Member since: Mar 19, 2015

250% profit margin isn't so bad. Samsung's problem may be that they are spending a tad too much on marketing and sales promotion (over $10B).

37. rouyal

Posts: 1598; Member since: Jan 05, 2018

If people are buying them, then obviously not overpriced

2. MsPooks

Posts: 311; Member since: Jul 08, 2019

Apple buyers continue to be gouged. Who knew?!

4. Tizo101

Posts: 644; Member since: Jun 05, 2015

Hehehe, waiting for them to come and brag about how android is barely making profit which is good for the consumers 'bottom line'.

34. shm224

Posts: 317; Member since: Mar 19, 2015

This is crazy.. I had an insecure coworker who bragged about losing his iPhone and buying it multiple times..

51. whatev

Posts: 2445; Member since: Oct 28, 2015

Please don’t be so mad and frustrated, your beauty will fade :(

5. midan

Posts: 3237; Member since: Oct 09, 2017

This just shows Apple is selling tens of millions more flagship phones than anyone else. Of course they get all the profits. Selling low cost $150 phones don't make much profit to you and that's what Android market mostly are.

13. JCASS889 unregistered

Dude shut up, are you really bragging about Apple making money? Who does that? Who brags about someone elses money? Seriously that's weird and really sad.

17. midan

Posts: 3237; Member since: Oct 09, 2017

Why so butthurt? I just told truth and explained this article

22. JCASS889 unregistered

I'm more confused on my you fawn over apples profits? Makes zero sense considering you don't see a dime of it. Who brags about someone's else's wealth?

28. midan

Posts: 3237; Member since: Oct 09, 2017

” Makes zero sense considering you don't see a dime of it. ” How clueless you are ;)

7. cmdacos

Posts: 4394; Member since: Nov 01, 2016

When I pay premium for a flagship, I expect to get the most out of it, not limitations and basic functionality like iPhones have so I am thankful I'm not overpaying for my devices. Less frustration is a worthwhile investment.

10. midan

Posts: 3237; Member since: Oct 09, 2017

And yet you are weirdly obsessed about Apple and their users.

15. JCASS889 unregistered

Let's go down the list on what an iPhone can't do that is completely unacceptable for the price they charge, No ability to send mp3s and avi files to other devices, basically zero media sharing. Watered down file browser can even read isos or rar files. Can't torrent on the phone and then transfer wirelessly to a computer. Zero USB support for boot drives, Install applications from 3rd party sources ( who the hell is apple to say what you can and can't install on YOUR phone). Access to recovery and the ability to put your own homemade roms onto the phone to make it truly your own. No micro SD card support( would rather charge you 50x the cost per gb. Zero themes Multi window/ dual app support. Can't change launcher or really customize anything besides wallpaper. Doesn't support external monitors or mice, At least with Android we are actually getting the hardware that we should get, charging 1000$ for a phone with 6gb ram is not cool, yeah yeah yeah iPhones don't need 12gb of ram but why not? More ram equals more capabilities, and freedom for power users. No wonder iPhones get a good geek bench score, they ain't doing anything else.

16. midan

Posts: 3237; Member since: Oct 09, 2017

If that’s what you want iPhone clearly isn’t right for you, i personally couldn’t care less about things you just listed You need to understand that we all have different needs. And buying smartphone is compromise. There’s no perfect smartphone and perfect OS in the market. You just need to see what are important for you and make your choice, isn’t it great that we have choices! ;) For example i’m musician and i own musical/music making gadgets for my iPhone and iPad and nothing in Android world comes anywhere close to what i get with iPhone because still many many years after Android OS still have audio latency problem, which is very weird knowing first iPhone already had zero audio latency. And again you propably don’t value those like i didn’t value your list so maybe you get the point?

18. JCASS889 unregistered

So you enjoy having a phone that can't do anything else but what Apple says? Android can do anything an iPhone can do. Enjoy your overpriced underspeced locked down phone. I'll be over here doing whatever I please on my phone.

32. darkkjedii

Posts: 31773; Member since: Feb 05, 2011

That's always his excuse, when the iPhones weaknesses are pointed out. Get used to it, when you debate him. That's why I stopped.

39. Vancetastic

Posts: 1901; Member since: May 17, 2017

It's hard to debate a parrot.

19. JCASS889 unregistered

Plus any real musicians are not using an iPhone to produce music, they use desktops or laptops with professional equipment. Get over yourself lol.

21. midan

Posts: 3237; Member since: Oct 09, 2017

Really? Seriously really? I always have laugh when someone says that line. Where is your brain are you really that simple minded? You know since first phones came with audio recording, musicians been recording their ideas to audio recorder so they remember it later and can make it to real music with their yes laptops or pc. Why you think i’m using iPhone to produce music? It’s getting those ideas from the head or just making new melodies on the go. You know when i can just plug my mini midi Keyboard to my phone, why would i carry heavy big laptop or pc? When i can record those same ideas to my phone in very compact size and transfer them later to my desktop music machine. You know i have that professional audio software on my phone and iPad than what i use on desktop too and can continue the mobile Project with full desktop software, isn’t that so convient? iPhones are lot more powerful than you think Well like i said you are clearly very simple minded. Somehow you got very Angry about this article and stopped using your brain. ” So you enjoy having a phone that can't do anything else but what Apple says? Android can do anything an iPhone can do. ” And yet i just said how bad Android OS is for musicians.. what part you didn’t understand?

23. JCASS889 unregistered

Yes powerful.... Limited to one audio type and 2 video formats, can't open zips and rar files, can't open 99% of any file type out there, can't even send an mp3 to another device. Sooo powerful.

24. midan

Posts: 3237; Member since: Oct 09, 2017

” can't open zips and rar files, ” sure you can. I personally haven’t found any file which i can’t open so have no idea what you are talking about. I can download a RAR or ZIP file from the web with safari and open it right away. How clueless you are?

* Some comments have been hidden, because they don't meet the discussions rules.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.
FCC OKs Cingular's purchase of AT&T Wireless